BILL NUMBER: S8719
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax credit
for food service establishment donations to food pantries
 
PURPOSE:
To amend the tax law, in relation to creating a tax credit for food
service establishment donation to a community-based organization.
 
SUMMARY OF PROVISIONS:
Section 210-b of the tax law is amended by adding new subdivision 63 to
read as follows: 63. Credit for food service establishment to an eligi-
ble community-based organization, (a) General. In the case of a taxpayer
that is a food service establishment, there shall be allowed a credit,
to be computed as hereinafter.provided against the tax imposed by this
article for taxable years beginning on and after January first, two
thousand twenty seven. The amount of the credit shall be fifty percent
of the marketed value of the taxpayer's qualified donations up to seven
dollars per qualified donation made to any eligible community based
organization during the taxable year, not to exceed ten thousand dollars
total per taxable year.
(b) Eligible food service establishment. For purposes of this subdivi-
sion, the term "food service establishment" means a taxpayer whose
federal gross income from prepared food sales for the taxable year is at
least half of federal gross income.
(c) Qualified donation. For purposes of this subdivision, the term
"'qualified donation" means a donation of a prepared meal adhering to
the standards of the most recent edition of the "Dietary Guidelines for
Americans" required by Section 5341 of Title 7 of the Code of Laws of
the United States of America. A qualified donation may not be trans-
ferred by the eligible food service establishment to the eligible commu-
nity-based organization in exchange for money, other property, or
services. .
(d) Eligible community-based organization. For purposes of this subdivi-
sion, the term "eligible community-based organization" means any program
operating within this state that accepts or distributes prepared meals
and has qualified for tax exemption under section 501(c)(3) of the
Internal Revenue Code.
(e) Marketed Value. For purposes of this subdivision, the term "marketed
value" means the cost, in US dollars, of a prepared meal offered for
sale to the public.
(f) Record of donation. To claim a credit under this subdivision, a
taxpayer must get and keep a receipt from the eligible community-based
organization showing: (i) the name of the eligible community-based
organization; (ii) the date and location of the qualified donation; and
(iii) a reasonably detailed description of the qualified donation. A
letter or other written communication from the eligible community-based
organization acknowledging receipt of the contribution and containing
the information in subparagraphs (i), (ii), and (iii) of this paragraph
Will serve as a receipt.
(g) Application of credit. The credit allowed under this subdivision for
any taxable year will not reduce the tax due for such year to less than
the amount prescribed in paragraph (d) of subdivision one of section two
hundred ten of this article. However, if the amount of credit allowed
under this subdivision for any taxable year reduces the tax to such
amount or if the taxpayer otherwise pays tax based on the fixed dollar
minimum amount, any amount of credit thus not deductible in such taxable
year will be treated as an overpayment of tax to be credited or refunded
in accordance with the provisions of section one thousand eighty-six of
this chapter. Provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding, no
interest will be paid thereon.
 
JUSTIFICATION:
New York State currently provides a tax credit for farmers who donate
food to pantries. However, it does not include donations of prepared
meals from restaurants. This credit would close that gap and incentivize
both food growers and meal producers to donate meals. It is particular-
ly time-sensitive due to the cuts to SNAP and other benefits that
provide food to those in need.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8719: 210-B tax law